In Sum - When "not worthwhile" RFPs are actually worthwhile...

One of my colleagues here at Bechtle shared a LinkedIn post internally with her team earlier this week, focusing on deciding when an RFP is worth responding to, along with some criteria to apply. The insights mirrored many of the criteria we applied at ACS for many years, but it got me thinking that there was more to the story.

(Author's note: In this article, I'll use terms like ITT, RFQ, RFP, Bid, Proposal, and Opportunity interchangeably. Though they're different things, essentially, we are discussing someone looking to buy something and wanting a detailed response evaluated through a formal procurement process.)

I'm not suggesting for a moment that there are many circumstances when you should mimic one of our competitors and respond to every RFP, regardless of the odds of success, resource strain, or a drop in the quality of responses. Indeed, the first time I met our Head of Solutions & Services (several years prior to our acquisition), I was explaining why ACS wouldn't be responding to an ITT. Sorry, Ajay! So I well understand the need to be judicial in choosing what to pursue.

So, before we move on to the exceptions, here are my personal key questions to evaluate whether to bid or not:

1. Do you have a relationship?

Did you know this opportunity was coming? Is it for a spending or past client, or is it a brand new chance to quote? Negative answers to this question shouldn’t preclude a response, but if you weren't involved before the opportunity hit the market, you must consider who was, which leads to...

2. Is this a done deal already?

By looking at the RFP, can you tell if it was written for a specific competitor? Is this just to provide a veneer of compliance or to lower the price?

3. Can you deliver the requirement at least as well as the competition?

If you can't deliver on the requirement as well as the likely competition, are you setting yourself up to fail?

4. Do you have a commercial advantage over the competition?

If your previous answers weren’t resounding yeses, consider if you have a price advantage or a level playing field against the competition.

5. Do you have the time and resources to respond properly?

Even if everything else is positive, consider whether you have the time and resources to respond effectively.

So, what's the decision?

Only the final question is a show-stopper by itself. If you've answered more "Yes" than "No", you probably have a decent opportunity. If not, you might be better off declining.

BUT didn't you say that isn't the whole story?

Correct, because the decision on whether to respond isn't just about winning the deal but may be part of something larger.

6. Can I do something Disruptive?

Is there a way you can disrupt the conventional bidding process? Whether by offering an alternative product or service that achieves the client's objectives in a unique and cost-effective way or by suggesting a different way of reframing the problem, being disruptive might allow you to overcome the challenges and win out.

7. Is winning the immediate opportunity not the objective?

Responding to an RFP might not always be about winning the immediate opportunity. It could be a part of a wider strategy to enter a new market or bring forth a new product or service and provide valuable data about how you are perceived by potential clients and compare to the competition. Additionally, it could be an opportunity to learn more about the prospect and establish credibility for the future.

8. Is it still worth responding as a training exercise or 'duck shoot'?

Rarely, an opportunity may come when responding to an RFP serves as a training exercise or a 'duck shoot.' It could be when you have a new bid team member, or you are preparing for a similar opportunity for a key client, or simply when there's a gap in the calendar for a quick turnaround.

In Sum

• Assessment and Relationship Building: Analysing the opportunity includes evaluating your relationship with the client, determining if the deal is predestined, understanding your ability to meet the requirements, and assessing commercial advantages or disadvantages.
• Strategic Considerations: Beyond immediate winning, strategic factors might influence the decision. These include the potential to disrupt the process with unique offers, engaging as part of a broader market entry strategy, or building credibility for future endeavours.
• Opportunistic Approaches: Sometimes, responding to an RFP might be valuable as a training exercise or to prepare for a similar opportunity. Understanding when such an opportunity arises allows for more flexible and responsive decision-making in the bidding process.